Market Overview

Perspective: Last Week's Auto Sales Figures Aren't Concerning, They're Returning To Normal

Share:
Perspective: Last Week's Auto Sales Figures Aren't Concerning, They're Returning To Normal

Recent auto sales numbers for May were mixed, continuing a recent trend in the first half of 2017.

Of the big three American auto manufacturers — Ford Motor Company (NYSE: F), General Motors Company (NYSE: GM) and Fiat Chrysler Automobiles NV (NYSE: FCAU) — only Ford posted rising sales. Japanese automakers also had similar results in the U.S.

Quick Figures Recap

  • Ford sales grew 2.2 percent.
  • General Motors sales fell 1.3 percent.
  • Fiat Chrysler USA sales fell 1 percent.
  • Honda Motor Co Ltd (ADR) (NYSE: HMC) sales grew 0.9 percent.
  • Toyota Motor Corp (ADR) (NYSE: TM) sales fell 0.5 percent.
  • Nissan Motor Co Ltd (ADR) (OTC: NSANY) sales fell 1.5 percent.

A Return To Normal

While slipping figures are cause for concern to some, TD Ameritrade Chief Strategist JJ Kinahan sees them as a sign that the status quo has is returning.

“Auto sales had an incredible pace for a year-and-a-half or so,” Kinahan told Benzinga. “It’s going to be very hard to keep that pace going.”

Kinahan attributes the record-breaking demand during this period to the recovery after the financial crisis, but it’s slowing in part thanks to cars that “actually last.” The average age of a car on the road is 12 years old.

He also doesn’t think recent developments in the GM and Fiat Chrysler emissions scandals are the main reasons behind slipping market share compared to Ford, suggesting it has more to do with long-term corporate strategies.

“I think what we’re starting to see is the sort of unmet demand [we’ve had recently] has been very much met,” said Kinahan. “Now we should see, in my opinion at least, more traditional numbers.”

Related Links:

The Trends Pressuring Used Car Sales In 2017

Positive Auto Sales Prompts Vetr To Upgrade Ford To 'Strong Buy'

Posted-In: Analyst Color Topics Travel Top Stories Economics Exclusives Markets Trading Ideas Best of Benzinga

 

Related Articles (F + FCAU)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DTEB of A SecuritiesMaintains140.0
BTGB of A SecuritiesMaintains6.3
SEGoldman SachsMaintains50.0
NFLXOppenheimerMaintains400.0
SHOPRoth CapitalMaintains390.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com